Analyzing BAJ Shop's Business Environment, Objectives, and Decision-Making
Introduction: Analyzing BAJ Shop's Business Environment, Objectives, and Decision-Making
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Business environment refers to the total number of people, companies, and other elements that come under the power of industry but that may impact its manufacturing or production process (Prajogo, 2016). The business environment is essential because it helps in addressing opportunities and creating first-mover benefits and also helps in finding the threats and danger signals. BAJ shop is a famous jewelry brand in London, UK. The company's main founders are five previous students of the BAJ school and one of these five students is John. The firm is involved in selling and designing different jewellery in the UK (BAJ, 2023).
Figure 1: Company Image
An introduction to sub-sectors and the different types of organizations in the industry, the market size and the growth of the international business environment
The different types and purposes of organisations such as public, private, voluntary sectors and legal structures are explained below
Conten
Private organizations
Public organizations
Voluntary organizations
Type of businesses
Under this category, firms generally operate their businesses for profit. This includes sole proprietorship, private limited and partnership, etc.
Under this class, organizations function to support communities other than that of monetary gain. This firm consists of social enterprises (Sahlman, 2022).
Generally, these organizations are known as NGOs. These firms begin to help people who are not capable of basic needs like food, shelter, health, and education. These organizations include Charities, NGOs, etc.
SectorMarket sizeGrowthComplexity
These companies are functions in private fields, that are controlled by a group of people. The size of the private equity market has 3.4 trillion EUROS. Private organizations are the fastest growing sector of the UK. Private companies generally facing difficulties in verifying the data for business.
These organizations hold by state governments. The size of government equity market is around 3.82 trillion pounds. Government is now targeting of arriving a 2.5% trend rate. In the government organizations mostly regulations arrangements for firms are difficult.
Under this class, organizations hold by government bodies or non-government bodies such as social activists. The market size of non-profit firms is 49.0 billion pounds. This is a non-profitable organization which is rising day-by-day through the support of the government. The non-profit firms facing many complexities such as fixed government budget, government rules and regulations.
Content
Micro-level
Small-level
Medium-level
Employees
The employee staffs are less than 10 members.
The workforce in this category is less than 50 employees.
The employee staffs are less than 250.
Turnover
The turnover is less than EUR 2 million (Quirke, 2017).
Its turnover is a minimum of EUR 10 million.
Companies’ turnover is EUR 50 million.
Companies' legal structure decides the tax burden such as sole proprietorship, private limited, public limited companies, etc.
A factsheet for a selected sub-sector organization, with an explanation of each of the chosen organizations
The company is offering skilfully designed and crafted jewelry at affordable prices to its customers in the UK, which also includes people from abroad.
Products-The BAJ shop is famous for selling rings, bracelets, and chains of excellent designs. Selling jewelry to celebrity clients represents 20 percent of the overall business.
Financial analysis- BAJ shop's annual revenue is 10 million euros and it is also expecting to increase its revenue by 10% shortly (BAJ, 2023).
Social Responsibility- theCompany participates in its local community; it is also contributing to regional enrolled charities by donating 1% of sales. BAJ shop also alliances with Creative Kids charity, to support children in London by offering basic necessities.
About the Team/Staff
The organization's most employees are hired by the British Academy of jewelry, where they completed their graduation in jewelry design. The staff of the BAJ plays an important role in its business because they have a great understanding of each piece of jewelry and they design it according to customers’ expectations.
Vision
BAJ shop's long-term vision is to be the best in the jewelry designing business. For this company wants to be sure that its directors' decisions are accurate so they can fulfill their vision.
Macro-environmental Trends
The firm has expertise in finding new trends under the higher level economic market atmosphere to become successful. But now the company is no longer influencing the greatest and most optimistic minds all over the Europe because UK government raise the living wage. Now time is changing and with time people's perspectives also changing people purchase products from those firms that are concerned with the environment (Igwe,et.al 2019).
Promotion
The directors believe that word-of-mouth is the best marketing strategy to promote their brand and due to this company does not have any social media page (Haneem,et.al 2019). Now social media platforms and mobile technologies are becoming the most famous marketing technique to reach a higher customer base. The firm is facing some difficulties in following these new ways of payment.
Business functions of BAJ shop
There are some business functions of the BAJ shop that are described below.
Chain of command –The company's chain of command is how projects are given and work is accepted. An organization framework enables the firm to describe how many stages of the hierarchya specific department must possess.
Departmentation – It is one of the most significant functions of the BAJ shop's structure. It knots the company's teams through related roles and responsibilities and empowers the company to acknowledge how each department links to one another.
The span of control – BAJ's span of control can show two things: who comes under an executive's, great management, and which tasks are related to a department's accountability.
Centralization - Centralization explains where decisions are eventually created (Lewis,et.al 2020). Once BAJ has implemented its chain of command, it will require to reflect on which people and departments have to discuss in every decision.
An analysis of the BAJ shop
The company's internal departments like finance, human resource and marketing, works collectively to attain the organizational goals of the firm. For this company distributes the responsibilities among these departments (Testa, et.al2016). The marketing manager assures that the company is satisfying the jewelry demands and expectations of the wealthiest class of customers. On the other hand, the finance department is liable for assessing and preparing budgets.
The PESTLE model to support a detailed analysis of the macro environment within an organisation
Political
Economical
Social
Technological
Legal
Environmental
The political situation in the country can affect the business of the BAJ shop. Such as new rules and regulations related to the tariff.
Economic conditions like inflation and war can decrease the demand for a company’s products and services.
Social factors like the living standards and income of the people can also impact the firm’s business.
Technological change in the market and new equipment can also be a major cause of influencing the demand and supply of the products.
Legal conditions like changes in government policies, rules, etc. are the key elements in the company’s business.
Environment concern is becoming a new normal among people so this also impacts the BAJ shop’s business.
The key advantage of this factor is the connection between two or more countries which helps the company in expanding its business.
The main advantage of this factor is the gold purchase restrictions are being relaxed which will be beneficial for the firm.
The major benefit of this factor is that a higher level of income encourages people to buy more jewellery products.
Technological change in the market also encourages the firm to adopt new technology for better outcomes in the business.
Sometimes government gives relax in tax or rules which give benefits to the company.
When a company is more concern with the environmental aspect, people will automatically attract to the firm’s products and services.
The main disadvantage of this condition is when two countries' relations are not on good terms then the firm will face some major issues in expanding its business.
A country’s economic conditions like inflation and war situations can affect business. people will not buy luxury products and services due to less income (Denhardt,et.al 2018).
Sometimes change in market trends, and customer demands can impact BAJ shop’s business negatively.
Technological change also impacts negatively because these changes are constant which increases the cost of production.
When a country’s government imposes new rules or implies restrictions on global business like tariffs can negatively impact the business.
As people are now more aware of the environment in such a situation if the company is concerned with the environment in its business function then people will not prefer to buy the firm’s products.
The internal and external analysis of specific organisations in order to identify strengths and weaknesses.
There are some advantages and disadvantages of finance and marketing management:
Financial management –With the help of finance, the department company cancontrol the cost of production because the finance department has the capability to control cost.
However, it also has some limitations such as the finance department does not forecast future expenses it only utilizes past data of costs to evaluate the values. This does not consist of things like price alteration or inflation.
Marketing management – BAJ can promote its products and services by using different marketing such as social media platforms or phone technologies which helps in attaining a higher customer base. While, There are some drawbacks relating to the marketing department as sometimes the company's marketing department spends a huge time and money but the results have not come as expected, so there is a waste of both time and money (Laudon, and Laudon, 2015).
Strengths
Weaknesses
Opportunities
Threats
The key strength of the company is that it is offering unique jewellery designs to its customers.
BAJ shop hires only those candidates who are graduates from BAJ Academy due to this sometimes the company misses the opportunity to work with the right talent for the future success of the firm.
New market trends or new jewelry lines can influence customers to purchase the products.
The main threats to the company include, that now government imposes some visa rules in the country that decrease the demand for products. and another threat is that now china is also selling the copy of BAJ shop’s jewelry designs might decrease the demand of the products in the coming future.
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Critically evaluate the impacts that micro factors have upon business objectives and decision-making
Competition: The level of competition within the industry can impact BAJ's business objectives and decision-making processes.
Consumer Preferences: Changes in consumer preferences can impact BAJ's business objectives and decision-making processes. For instance, if consumers prefer eco-friendly products, BAJ may have to adjust its products and marketing strategies accordingly.
Suppliers: The availability and cost of raw materials and supplies can impact BAJ's business objectives and decision-making processes. For instance, an increase in the cost of gold can lead to an increase in the cost of BAJ's products.
Conclusion
The report is made to highlight the overview of the company with the products and services, vision, size and scope of the BAJ Company. The key features of the report are the advantages and disadvantages of the finance and marketing department. At last, it is concluded that both macro and micro factors can impact BAJ's business objectives and decision-making processes. It is essential for the company to closely monitor these factors and adjust its strategies accordingly to remain competitive in the market.
References
BAJ, 2023. About us (Online) Accessed <https://baj.ac.uk/about-baj/> accessed on 17-02-2023.
Denhardt, R.B., Denhardt, J.V., Aristigueta, M.P. and Rawlings, K.C., 2018. Managing human behavior in public and nonprofit organizations. Cq Press.
Haneem, F., Kama, N., Taskin, N., Pauleen, D. and Bakar, N.A.A., 2019. Determinants of master data management adoption by local government organizations: An empirical study. International Journal of Information Management, 45, pp.25-43.
Igwe, P.A., Amaugo, A.N., Ogundana, O.M., Egere, O.M. and Anigbo, J.A., 2019. Factors affecting the investment climate, SMEs productivity and entrepreneurship in Nigeria. European Journal of Sustainable Development, 7(1), pp.182-200.
Laudon, K.C. and Laudon, J.P., 2015. Essentials of management information systems. Pearson.
Lewis, D., Kanji, N. and Themudo, N.S., 2020. Non-governmental organizations and development. Routledge.
Prajogo, D.I., 2016. The strategic fit between innovation strategies and business environment in delivering business performance. International journal of production Economics, 171, pp.241-249.
Quirke, B., 2017. Making the connections: Using internal communication to turn strategy into action. Routledge.
Sahlman, W.A., 2022. The structure and governance of venture-capital organizations. In Venture capital (pp. 3-51). Routledge.
Testa, F., Gusmerottia, N.M., Corsini, F., Passetti, E. and Iraldo, F., 2016. Factors affecting environmental management by small and micro firms: The importance of entrepreneurs’ attitudes and environmental investment. Corporate Social Responsibility and Environmental Management, 23(6), pp.373-385.
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